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State Name: Massachusetts
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State Name dash: Massachusetts
State Name lower underscore: massachusetts
State Name lower dash: massachusetts
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State Abbreviation: MA
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If you've been following the MBS Commentary, you know what a big deal this afternoon could be. Markets have been preparing for it for weeks and MBS Live members have been on top of those movements every step of the way.

This afternoon, when markets are convulsing mere milliseconds after the Fed Announcement, MBS Live members will know what's going on before anyone else. The accuracy and speed of our real-time price stream and alerts is unmatched.

To make a long story short, bond markets have been correcting from their recent rally ever since Greece began correcting from their recent rout. The latter hasn't taken any new steps today, but the fact that Greek yields haven't gone right back to skyrocket mode is enough for core bond markets to be cautious.

After having improved vs German debt to the tightest levels in weeks and with NFP coming up in 2 days, US Treasuries are understandably underperforming Germany now. So as German Bunds continue a 2-day bounce higher in yield, Treasuries have done the same. It's been strongly guided by technical levels and the tradeflow-based motivations (as opposed to trading based on fundamentals and news) is clearly seen in the timing of the movement (US spread vs Germany was steady all night until domestic traders showed up).

Two potential market movers are having essentially no effect this morning: data and oil. The weaker-than-expected ADP numbers were quickly overshadowed by the morning tradeflow momentum and bond markets have completely overlooked a sharp retreat in oil prices. The only silver lining is that the 1.84 technical level has been holding up well. Actually, the other silver lining is that there's been no big-picture change in the fundamentals that continue making a case for a race to the bottom for global bond yields. Corrections must be endured, but we haven't lost nearly enough ground to consider the current weakness to be anything else.

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

About the Author

A former originator, Matthew began writing for Mortgage News Daily in 2007, covering a wide range of topics. Seeing a need in the marketplace, his focus increasingly shifted toward relating MBS and broader financial markets for loan originators.
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